What is the average rent in Seoul?

Authored by the expert who managed and guided the team behind the South Korea Property Pack

Yes, the analysis of Seoul's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Seoul. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Seoul real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in districts like Gangnam, Hongdae, and Jongno. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current average rent in Seoul for different property types like studios, apartments, and villas?

Seoul's rental market shows clear price tiers based on property type as of September 2025.

Studios and one-room apartments range from ₩500,000 to ₩1,500,000 monthly, with university areas typically seeing ₩580,000 to ₩709,000 per month. The Seoul National University area offers lower rates while neighborhoods near Ewha, Korea, Yonsei, and Kyung Hee Universities command higher prices.

One-bedroom apartments including officetels cost between ₩1,000,000 and ₩2,000,000 monthly. Two-bedroom units range from ₩1,500,000 to ₩3,500,000, while three-bedroom apartments span ₩2,500,000 to ₩4,500,000, reaching up to ₩5,000,000 for premium units in Gangnam.

Villas, which are low-rise residential buildings, typically cost 10-30% less than equivalent apartment sizes. Detached houses start at ₩3,000,000 per month and increase significantly based on location and amenities.

It's something we develop in our South Korea property pack.

How does average rent vary between different Seoul districts and neighborhoods?

District location dramatically impacts rental costs across Seoul's diverse neighborhoods.

Gangnam district commands the highest prices with studios averaging ₩900,000, one-bedrooms at ₩1,200,000, and larger units reaching ₩2,500,000. Itaewon follows closely with studios at ₩1,000,000 and two to three-bedroom units at ₩2,300,000.

University districts like Hongdae and Sinchon offer more affordable options. Hongdae studios average ₩720,000 with one-bedrooms at ₩850,000, while Sinchon provides even better value at ₩680,000 for studios and ₩800,000 for one-bedrooms.

Jamsil represents a middle-tier option with studios at ₩720,000 and two to three-bedroom units at ₩2,000,000. Jongno offers the most budget-friendly central location with studios from ₩480,000 and larger units starting at ₩1,000,000.

What's the rent breakdown based on property size and surface area?

Property Size	Surface Area (m²)	Monthly Rent (KRW)	Price per m² (KRW)
Studio/Small Unit	20-33	580,000 - 1,500,000	18,000 - 45,000
1-Bedroom	30-50	1,000,000 - 2,000,000	20,000 - 66,000
2-Bedroom	60-75	1,500,000 - 3,500,000	20,000 - 58,000
3-Bedroom	75-120+	2,500,000 - 5,000,000	21,000 - 66,000
Large Apartment	100+	3,000,000+	30,000+

How much do tenants pay in total including fees, maintenance, and utilities?

Total monthly costs extend significantly beyond base rent in Seoul's rental market.

Monthly maintenance and management fees add ₩110,000 to ₩350,000 to base rent depending on building amenities and services. Utilities including electricity, gas, and water typically cost ₩50,000 to ₩150,000 monthly with seasonal variations, while internet and cable services add another ₩30,000 to ₩50,000.

A one-bedroom apartment in central Seoul totals ₩1,000,000 to ₩2,300,000 all-inclusive monthly. Premium Gangnam locations exceed ₩3,000,000 monthly when including all fees and utilities.

Tenants should budget 15-25% above base rent for additional costs. Studios in university areas total approximately ₩700,000 to ₩900,000 monthly including all expenses, while luxury three-bedroom units can reach ₩6,000,000 or more all-inclusive.

What taxes and government costs do property owners face when renting out in Seoul?

Seoul property owners encounter multiple tax obligations and government-related expenses.

Income tax on rental income follows progressive rates from 6% to 45%, with most landlords paying 15-35% on personal rental income. Property tax ranges from 0.07% to 5% annually based on asset value, property use, and specific location within Seoul.

Transaction costs for property transfers range from 1% to 12% of property value, while real estate agent fees typically cost 0.4% to 0.6% of transaction value. Additional costs include maintenance reserves, repair expenses, and potential vacancy periods between tenants.

Landlords must also consider comprehensive property insurance, building management fees, and potential legal costs for tenant disputes or contract enforcement.

How do financing and mortgage costs impact rental property profitability?

Current mortgage rates significantly influence Seoul rental property investment returns.

Average mortgage interest rates range from 3.98% to 4.27% for floating rates, with fixed loan offers typically between 3.75% and 4.05% as of September 2025. The Bank of Korea base rate sits at 2.5%, contributing to relatively favorable borrowing conditions.

Lower interest rates in 2025 help boost net rental yields for leveraged properties. However, tighter lending requirements for expensive properties limit leverage opportunities, particularly in premium districts like Gangnam and Yongsan.

Investors can typically secure financing for 60-80% of property value depending on location and borrower qualifications. The favorable rate environment makes smaller, well-located rental properties more attractive for leveraged investment strategies compared to premium luxury units.

What are the pros and cons of short-term versus long-term rentals in Seoul?

Seoul's rental market offers distinct advantages and challenges for both rental strategies.

**Short-term rentals (Airbnb-style):**1. Higher nightly revenue potential during peak seasons2. Flexible property use for owners3. Ability to capitalize on seasonal demand spikes4. Higher overall gross returns in prime locations5. Quick market adaptation capability**However, short-term rentals face:**1. Legal restrictions and regulatory compliance requirements2. Higher management and cleaning costs3. Increased vacancy periods between bookings4. Ongoing regulatory risk and policy changes5. More intensive property management demands**Long-term rentals provide:**1. Stable monthly cash flow predictability2. Easier property management requirements3. Strong tenant protection laws4. Lower operational costs and complexity5. Reduced regulatory oversight**But long-term rentals involve:**1. Lower overall yield potential2. Less property use flexibility3. Tenant default risks4. Longer vacancy periods when units become available5. Limited rent increase opportunities

Can you provide specific rental price examples for different property types and sizes?

Property Description	Location	Monthly Rent (KRW)	Total Monthly Cost (KRW)
Studio, 25m²	Hongdae University Area	720,000	920,000
1BR Officetel, 35m²	Gangnam Business District	1,800,000	2,200,000
2BR Apartment, 65m²	Jamsil Residential Area	2,000,000	2,400,000
3BR Apartment, 95m²	Itaewon International District	3,200,000	3,800,000
3BR Premium Apartment, 120m²	Gangnam Luxury Complex	4,800,000	5,500,000
Villa, 80m²	Sinchon Residential	1,400,000	1,700,000
Detached House, 150m²	Jongno Traditional Area	3,500,000	4,200,000

Who are the typical renters in Seoul and what profiles dominate the market?

Seoul's rental market serves diverse tenant demographics with distinct preferences and requirements.

Studios and goshiwon attract primarily students and young professionals, including single expats seeking affordable accommodations near universities or business districts. One-bedroom apartments and officetels appeal to couples, singles, international residents, and junior executives who value modern amenities and central locations.

Villa properties typically house budget-conscious families and multigenerational households seeking more space at lower costs. Two to three-bedroom apartments serve growing families, executives, and high-income renters who prioritize space and amenities.

Premium districts like Gangnam and Yongsan attract finance and technology professionals, diplomats, and multinational company executives willing to pay premium rates for prestige locations and luxury amenities.

It's something we develop in our South Korea property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are vacancy rates by property type and location, and how stable are they?

Seoul's rental market maintains relatively low vacancy rates with significant location-based variations.

Central apartment districts experience very low vacancy rates below 2-3% due to consistent demand from professionals and families. Grade A office buildings show vacancy rates around 2.6-4% as of Q1 2025, indicating tight commercial space availability.

Officetel and co-living units sometimes experience higher vacancy rates when markets become oversupplied with new developments. Peripheral suburbs and larger residential units face higher vacancy rates compared to central, smaller properties.

Stability remains strong in core Seoul districts with established transportation infrastructure and employment centers. University areas maintain consistent occupancy due to steady student demand, while luxury segments may experience seasonal fluctuations based on expatriate housing cycles.

Which property types and areas offer the smartest choices for maximizing rental yield?

Seoul rental market rewards strategic property selection based on location and target demographics.

One-bedroom apartments and studios near universities and business hubs deliver the highest yields ranging from 5.5% to 7.0%. These properties benefit from strong demand, predictable occupancy, and relatively lower acquisition costs compared to luxury alternatives.

Peripheral but accessible districts often outperform central luxury apartments in net yield calculations. Transportation connectivity to major employment centers proves more important than prestigious addresses for yield optimization.

Co-living spaces and officetels provide attractive yields for investors willing to engage in more active property management. Premium districts like Gangnam generate high absolute rental income but deliver lower rental yields due to elevated property purchase prices.

Properties targeting young professionals and students offer the most consistent demand and occupancy rates across economic cycles.

How have rents and yields evolved over time, and what's the forecast compared to other major cities?

Seoul's rental market shows moderate growth patterns with strategic opportunities for informed investors.

Rents increased 2.7-3.6% year-over-year as of September 2025, with smaller unit segments showing strongest growth. Over the past five years, rents have risen while yields slightly decreased in prime areas but improved in peripheral locations.

One-year forecast indicates rent increases of 1-3% with small units maintaining the strongest performance. Five-year projections show gradual growth with increased institutional supply and focus on smaller, affordable housing options.

Ten-year outlook anticipates strong rental demand as single-person households increase and aging population favors rental over ownership. However, yields may compress if property prices surge faster than rental income growth.

**Seoul versus regional competitors:**1. Higher growth and price per square meter than Shanghai2. Similar vacancy rates to major regional cities3. Generally higher rental yields for small units compared to luxury segments4. Tokyo offers slightly lower overall rental yields but greater market stability5. Shanghai shows comparable price growth with slightly higher luxury property vacancy rates

It's something we develop in our South Korea property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Korea JoongAng Daily - University Area Rent Report
2. Korea JoongAng Daily - Seoul Rent Analysis
3. Korea Herald - Property Market Report
4. BambooRoutes - Seoul Average Rent Guide
5. BambooRoutes - Seoul Apartment Rent Analysis
6. Global Property Guide - South Korea Taxes
7. The Global Economy - South Korea Mortgage Rates
8. BambooRoutes - Seoul Price Forecasts
9. Cushman & Wakefield - Seoul Office Market Report
10. BambooRoutes - South Korea Housing Market Forecast